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enMon, 19 Mar 2018 21:04:49 +0000Tue, 20 Mar 2018 00:00:01 +0000Global risk conditions now a weaker driver of global liquidityhttps://voxeu.org/article/global-risk-conditions-now-weaker-driver-global-liquidity
The post-crisis period has seen a considerable shift in drivers of international bank lending and international bond issuance, the two main components of global liquidity. This column describes how the sensitivity of cross-border lending to global risk conditions declined substantially post-crisis, becoming similar to that of international bond issuance. This fall largely reflects a change in the composition of international lenders.
https://voxeu.org/article/global-risk-conditions-now-weaker-driver-global-liquidity2018-03-20T00:00:00VoxEU.org: Recent ArticlesGlobal risk conditions now a weaker driver of global liquidityAvdjiev, Gambacorta, Goldberg, SchiaffiThe post-crisis period has seen a considerable shift in drivers of international bank lending and international bond issuance, the two main components of global liquidity. This column describes how the sensitivity of cross-border lending to global risk conditions declined substantially post-crisis, becoming similar to that of international bond issuance. This fall largely reflects a change in the composition of international lenders.
VoxEUExchange-traded funds and the global financial cyclehttps://voxeu.org/article/exchange-traded-funds-and-global-financial-cycle
The share of fund assets held in exchange-traded funds has risen from 3.5% in 2005 to 14% in 2017, and to 20% for funds in emerging market assets. This column uses reported investor flows to argue that this is related to increased exposure of aggregate portfolio equity capital inflows to global risk. On this evidence, exchange-traded fund flows amplify the global financial cycle.
https://voxeu.org/article/exchange-traded-funds-and-global-financial-cycle2018-03-20T00:00:00VoxEU.org: Recent ArticlesExchange-traded funds and the global financial cycleConverse, Levy Yeyati, WilliamsThe share of fund assets held in exchange-traded funds has risen from 3.5% in 2005 to 14% in 2017, and to 20% for funds in emerging market assets. This column uses reported investor flows to argue that this is related to increased exposure of aggregate portfolio equity capital inflows to global risk. On this evidence, exchange-traded fund flows amplify the global financial cycle.
VoxEUFinancial engineering will not stabilise an unstable euro areahttps://voxeu.org/article/financial-engineering-will-not-stabilise-unstable-euro-area
A number of economists and officials have recently proposed different schemes aimed at using financial markets to impose the right amount of discipline in the euro area. This column argues that this would not eliminate the inherent instability of the sovereign bond markets in a monetary union. During crises this instability becomes systemic, and no amount of financial engineering can stabilise an otherwise unstable system.
https://voxeu.org/article/financial-engineering-will-not-stabilise-unstable-euro-area2018-03-19T00:00:00VoxEU.org: Recent ArticlesFinancial engineering will not stabilise an unstable euro areaDe Grauwe, JiA number of economists and officials have recently proposed different schemes aimed at using financial markets to impose the right amount of discipline in the euro area. This column argues that this would not eliminate the inherent instability of the sovereign bond markets in a monetary union. During crises this instability becomes systemic, and no amount of financial engineering can stabilise an otherwise unstable system.
VoxEUHighlights from the 2nd ECB Annual Research Conferencehttps://voxeu.org/article/highlights-2nd-ecb-annual-research-conference
In September 2017, the ECB held its second Annual Research Conference. This column surveys the contributions to the conference, which brought together academics and central bankers working at the cutting edge of economics, covering a wide range of research relevant for the ECB. ECB Vice-President Vítor Constâncio highlighted the value that the ECB attaches to research, which “contributes to shaping the intellectual framework that we use to understand economic developments and to take policy decisions”. Other speakers included Olivier Blanchard, Peter Diamond, Hyun Song Shin, and Jeremy Stein.
https://voxeu.org/article/highlights-2nd-ecb-annual-research-conference2018-03-19T00:00:00VoxEU.org: Recent ArticlesHighlights from the 2nd ECB Annual Research ConferenceDedola, Laeven, MargioccoIn September 2017, the ECB held its second Annual Research Conference. This column surveys the contributions to the conference, which brought together academics and central bankers working at the cutting edge of economics, covering a wide range of research relevant for the ECB. ECB Vice-President Vítor Constâncio highlighted the value that the ECB attaches to research, which “contributes to shaping the intellectual framework that we use to understand economic developments and to take policy decisions”. Other speakers included Olivier Blanchard, Peter Diamond, Hyun Song Shin, and Jeremy Stein.
VoxEUTherapeutic translation in the wake of the genomehttps://voxeu.org/article/therapeutic-translation-wake-genome
There has been criticism that the ‘genetic revolution’ heralded by the completion of the Human Genome Project has failed to meet the more optimistic expectations of 15 years ago and that patient outcomes have not materially improved. This column analyses the extent to which basic genetic science has fuelled early-stage drug innovation. The results suggest that alleged ‘slower-than-expected’ progress has been partly caused by the amount of complexity in human biology, which was unexpected prior to the Project’s completion but has been progressively revealed since then.
https://voxeu.org/article/therapeutic-translation-wake-genome2018-03-18T00:00:00VoxEU.org: Recent ArticlesTherapeutic translation in the wake of the genomeHermosilla, LemusThere has been criticism that the ‘genetic revolution’ heralded by the completion of the Human Genome Project has failed to meet the more optimistic expectations of 15 years ago and that patient outcomes have not materially improved. This column analyses the extent to which basic genetic science has fuelled early-stage drug innovation. The results suggest that alleged ‘slower-than-expected’ progress has been partly caused by the amount of complexity in human biology, which was unexpected prior to the Project’s completion but has been progressively revealed since then.
VoxEUMissions, health investments, and HIV prevalence in sub-Saharan Africahttps://voxeu.org/article/missions-health-investments-and-hiv-prevalence-sub-saharan-africa
HIV prevention in sub-Saharan Africa is often shaped by the influence of Christian churches, tending to focus on abstinence rather than safer sexual behaviour. This column investigates the relationship between historical Christian missionary activities and HIV prevalence today. Regions close to missions in general tend to exhibit higher HIV prevalence, an effect that is driven by Protestant missions. Regions close to missions that specifically invested in health, however, exhibit lower HIV prevalence today.
https://voxeu.org/article/missions-health-investments-and-hiv-prevalence-sub-saharan-africa2018-03-17T00:00:00VoxEU.org: Recent ArticlesMissions, health investments, and HIV prevalence in sub-Saharan AfricaCagé, RuedaHIV prevention in sub-Saharan Africa is often shaped by the influence of Christian churches, tending to focus on abstinence rather than safer sexual behaviour. This column investigates the relationship between historical Christian missionary activities and HIV prevalence today. Regions close to missions in general tend to exhibit higher HIV prevalence, an effect that is driven by Protestant missions. Regions close to missions that specifically invested in health, however, exhibit lower HIV prevalence today.
VoxEUTrade cold wars and the value of agreements during crises https://voxeu.org/article/trade-cold-wars-and-value-agreements-during-crises
Economic downturns can be both a cause and an effect of uncertainty. This column argues that uncertainty has international spillovers that can be mitigated via credible international trade agreements such as NAFTA, which provided US firms with valuable insurance against the widespread threat of a global trade war during the 2008 crisis. However, the credibility and insurance value of these agreements is being trumped by events such as Brexit, the renegotiation of NAFTA, and US threats of a trade war, which mark the start of a ‘trade cold war’.
https://voxeu.org/article/trade-cold-wars-and-value-agreements-during-crises2018-03-16T00:00:00VoxEU.org: Recent ArticlesTrade cold wars and the value of agreements during crises Carballo, Handley, LimãoEconomic downturns can be both a cause and an effect of uncertainty. This column argues that uncertainty has international spillovers that can be mitigated via credible international trade agreements such as NAFTA, which provided US firms with valuable insurance against the widespread threat of a global trade war during the 2008 crisis. However, the credibility and insurance value of these agreements is being trumped by events such as Brexit, the renegotiation of NAFTA, and US threats of a trade war, which mark the start of a ‘trade cold war’.
VoxEUSovereign GDP-linked bonds: Rationale and designhttps://voxeu.org/article/sovereign-gdp-linked-bonds-rationale-and-design
While the idea of governments issuing debt instruments whose repayments are indexed to GDP is not new, the current global backdrop of high government debt suggests the case for doing so might be especially strong now. This column introduces a new eBook in which leading economists, lawyers, and investors examine the case for issuing GDP-linked bonds, the obstacles to market development, ways of overcoming them, and what such a security might look like in practice.
https://voxeu.org/article/sovereign-gdp-linked-bonds-rationale-and-design2018-03-16T00:00:00VoxEU.org: Recent ArticlesSovereign GDP-linked bonds: Rationale and designShiller, Ostry, Benford, JoyWhile the idea of governments issuing debt instruments whose repayments are indexed to GDP is not new, the current global backdrop of high government debt suggests the case for doing so might be especially strong now. This column introduces a new eBook in which leading economists, lawyers, and investors examine the case for issuing GDP-linked bonds, the obstacles to market development, ways of overcoming them, and what such a security might look like in practice.
VoxEUSovereign GDP-Linked Bonds: Rationale and Designhttps://voxeu.org/content/sovereign-gdp-linked-bonds-rationale-and-design
In this eBook leading economists, lawyers, and investors examine the case for issuing GDP-linked bonds, the obstacles to market development, ways of overcoming them, and what such a security might look like in practice.
https://voxeu.org/content/sovereign-gdp-linked-bonds-rationale-and-design2018-03-16T00:00:00VoxEU.org: Recent ArticlesSovereign GDP-Linked Bonds: Rationale and DesignShiller, Ostry, BenfordIn this eBook leading economists, lawyers, and investors examine the case for issuing GDP-linked bonds, the obstacles to market development, ways of overcoming them, and what such a security might look like in practice.
VoxEUA new classification of monetary policy frameworkshttps://voxeu.org/article/new-classification-monetary-policy-frameworks
Monetary policy characterisations across countries rely on the availability of data, but while exchange rate classifications are well developed, the same is not true for domestic targets. This column introduces a new classification of the monetary policy frameworks of different advanced and emerging countries, including domestic and external targets. One trend revealed by the classification is the movement over time away from exchange rate targets and loosely structured discretion towards inflation targeting.
https://voxeu.org/article/new-classification-monetary-policy-frameworks2018-03-16T00:00:00VoxEU.org: Recent ArticlesA new classification of monetary policy frameworksCobhamMonetary policy characterisations across countries rely on the availability of data, but while exchange rate classifications are well developed, the same is not true for domestic targets. This column introduces a new classification of the monetary policy frameworks of different advanced and emerging countries, including domestic and external targets. One trend revealed by the classification is the movement over time away from exchange rate targets and loosely structured discretion towards inflation targeting.
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